Altoona Times

Jul. 10, 2024

HARRISBURG – Today, Pennsylvania’s Independent Fiscal Office (IFO) released studies on the economic impact of the Pittsburgh Pirates and the Philadelphia Phillies on their respective cities.

After reviewing the reports, Reps. Tim Bonner (R-Mercer/Butler) and Jim Gregory (R-Blair) stated that the Pirates' organization needs to ensure that its fans and taxpayers across the Commonwealth receive a fair return on their investment.

In the early 2000s, the Pittsburgh Pirates received $75 million in state grant funding for the land and construction of PNC Park. Allegheny County tax funding amounted to approximately $147 million. The Pirates’ organization contributed around $40 million for a total cost of $260 million. In exchange for this investment, public economic benefits are expected, according to the representatives.

In 2030, the current lease on PNC Park will expire, necessitating economic and lease renewal decisions by both the Pirates and the Allegheny County Sports and Exhibition Authority.

While acknowledging some local economic benefits from the Pirates, they fall behind their cross-state counterparts, the Philadelphia Phillies, in several economic factors:

- The Pirates drive $254 million in 2023 net direct spending; the Phillies drive $525 million.

- The Pirates generate $546 million in direct spending; the Phillies generate $970 million.

- The Pirates support approximately 3,000 jobs; the Phillies support 5,450.

- The Pirates generate $22 million in tax dollars for Pennsylvania; the Phillies generate $45 million.

Even considering population size differences between Pittsburgh and Philadelphia, financial outputs differ significantly between both teams.

The IFO also reviewed relationships between team payrolls, wins, and attendance. They found positive correlations between team payrolls and wins as well as wins and fan attendance.

Over three decades, the Pirates have had one of baseball's worst records with only four winning seasons during that period. Additionally, no team has spent less on free agency signings than they have.

Pirates’ ownership has seen significant increases in team value—now at $1.32 billion according to Forbes Magazine—and profit margins due to revenue sharing among teams and television partners. Despite this financial growth, their payroll ranks consistently low within Major League Baseball.

The reports suggest that increasing average win totals by just three games could potentially generate an additional estimated $76 million in total fan spending annually—$31 million of which would directly benefit local businesses outside PNC Park.

Bonner emphasized taxpayer expectations: “If taxpayers are going to put money into stadiums,” he said,“the Pirates need to also invest in PNC Park as well as put a worthy product on-field.” He added that sustained success can boost fan attendance driving local economies further.

Gregory echoed these sentiments: “I've waited long for this data showing what we thought was true is real now quantified for taxpayers,” he remarked.“Philly will be pleased while Yinzers point out Bucs need improvement.”

For detailed information about IFO’s reports regarding both teams visit ifo.state.pa.us/.

Representative Tim Bonner

17th Legislative District

Representative Jim Gregory

80th Legislative District

Pennsylvania House of Representatives

Bonner Media Contact: Tim Craine - 717.609.7331 - tcraine@pahousegop.com

Gregory Media Contact: Jennifer Fitch - 717.260.6563 - jfitch@pahousegop.com

###